I was browsing the New York Times this morning and found an interesting article that discussed the trend for Americans to dig themselves even deeper into debt. Since I deal with a number of clients and help with their finances, this didn't surprise me. I've noticed that many individuals and families just continue to get further into debt even if they are increasing their income.

The story is interesting and worth a read to help you understand why more people are continuing to dig themselves deeper into debt, but the real striking part about this piece is the interactive tool that allows you to plug in your own financial numbers to see how you compare. Once you reach that page, you can select the "launch interactive" button and proceed to enter your various debt totals.

You can then use the chart and sliders from the results to compare yourself to others in your age group, or even similar incomes. It is quite interesting, and it is helpful to see where you stand relative to others. This can help shed some light on your debt situation and work as a catalyst towards making improvements. If you want to see how things have changed since 1920, be sure to click on the "series index" of the interactive map where you can view a timeline with some interesting statistics.

Most people are familiar with the 401(k) plan, which is provided by many employers to allow employees to automatically save for retirement. But what about 403(b) plans? These retirement plans have more in common with 401(k)s than you might think. The biggest difference is that these plans are only offered to specific employers: nonprofit organizations, schools, churches, and some hospitals. So, if you don't work for one of these types of organizations, you're probably not familiar with this type of plan.

Similarities to a 401(k) Plan

In the early days, 403(b) plans were primarily called tax sheltered annuities, or TSAs. This meant there was little individual investment choices, and employees were required to place their money into this annuity. While there are still plenty of 403(b) plans set up strictly as a TSA, many have now evolved into spitting images of their 401(k) counterparts. This means that the plans may provide a number of different investments to choose from, the possibility of receiving a company match, and even traditional withdrawals without the need of using an annuity. 403(b)s typically have the same contribution limits and withdrawal requirements as a 401(k).

Some Differences

Aside from some minor legal requirements, if your 403(b) is structured like a 401(k), there is virtually no difference. This isn't true for the traditional TSA products. These types of 403(b)s may have very limited options. Another slight difference is the additional catch-up provision. Most 403(b) plans have a 15-year of service catch-up which allows employees who have worked for the same employer for at least 15 years to be able to contribute up to an additional $3,000.